M/s. Barnala Steel Industries Ltd., Muzaffarnagar V. ACIT, Muzaffarnagar

ITA 6784/DEL/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7111 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 30-08-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 30-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: UMESH CHANDRA DUBEY SENIOR
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH D DD D: NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND SMT. DIVA SINGH SMT. DIVA SINGH SMT. DIVA SINGH SMT. DIVA SINGH, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NOS ITA NOS ITA NOS ITA NOS . .. . 6781/DEL/2013, 6782/DEL/2013 & 6784/DEL/2013 6781/DEL/2013, 6782/DEL/2013 & 6784/DEL/2013 6781/DEL/2013, 6782/DEL/2013 & 6784/DEL/2013 6781/DEL/2013, 6782/DEL/2013 & 6784/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR S SS S : : : : 2002 2002 2002 2002 - -- - 03, 2004 03, 2004 03, 2004 03, 2004 - -- - 05 & 2007 05 & 2007 05 & 2007 05 & 2007 - -- - 08 0808 08 M/S BARN M/S BARN M/S BARN M/S BARN ALA STEEL INDUSTRIES ALA STEEL INDUSTRIES ALA STEEL INDUSTRIES ALA STEEL INDUSTRIES LIMITED, LIMITED, LIMITED, LIMITED, MEERUT ROAD, MEERUT ROAD, MEERUT ROAD, MEERUT ROAD, MUZAFFARNAGAR. MUZAFFARNAGAR. MUZAFFARNAGAR. MUZAFFARNAGAR. PAN : AABCB2772Q. PAN : AABCB2772Q. PAN : AABCB2772Q. PAN : AABCB2772Q. VS. VS. VS. VS. ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -2, 2,2, 2, MUZAFFARNAGAR. MUZAFFARNAGAR. MUZAFFARNAGAR. MUZAFFARNAGAR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANKIT GUPTA, ADVOCATE. RESPONDENT BY : SHRI UMESH CHANDRA DUBEY, SENIOR DR. DATE OF HEARING : 30.08.2016 30.08.2016 30.08.2016 30.08.2016 DATE OF PRONOUNCEMENT : 05.09.2016 05.09.2016 05.09.2016 05.09.2016 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THESE APPEALS BY THE ASSESSEE FOR THE ASSESSMENT Y EARS 2002- 03, 2004-05 & 2007-08 ARE DIRECTED AGAINST THE ORDE R OF LEARNED CIT(A), MUZAFFARNAGAR DATED 23 RD SEPTEMBER, 2013. 2. IN ALL THESE APPEALS, THE ASSESSEE IS AGGRIEVED AGAINST THE LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE INCOME-TAX A CT, 1961 AS UNDER:- ASSESSMENT YEAR AMOUNT 2002-03 `22,383/- 2004-05 `16,794/- 2007-08 `33,661/- 3. WE HAVE HEARD THE SUBMISSIONS OF BOTH THE SIDES AND HAVE PERUSED THE MATERIAL PLACED BEFORE US. WE FIND THA T PENALTY U/S ITA-6781, 6782 & 6784/D/2013 2 271(1)(C) OF THE ACT HAS BEEN LEVIED ON THE DISALLO WANCE OF SMALL AMOUNTS. IN ASSESSMENT YEAR 2002-03, PENALTY HAS B EEN LEVIED FOR DISALLOWANCE OF EXPENSES OF `62,697/- ON THE ONLY G ROUND THAT THE EXPENDITURE WAS NOT ACTUALLY PAID. IN ASSESSMENT Y EAR 2004-05, THE ASSESSING OFFICER DISALLOWED PART OF DEPRECIATION A MOUNTING TO `46,805/-. IN ASSESSMENT YEAR 2007-08, PENALTY HAS BEEN LEVIED ON ACCOUNT OF DISALLOWANCE OF SCHOLARSHIP OF `1,00,000 /- PAID BY THE ASSESSEE. IN OUR OPINION, MERELY BECAUSE SOME EXPE NDITURE IS DISALLOWED OR DEPRECIATION IS PARTLY ALLOWED, IT CA NNOT BE A GROUND OF LEVY OF PENALTY FOR CONCEALMENT OF INCOME. THERE I S NO ALLEGATION THAT THE ASSESSEE CONCEALED ANY FACT OR THE DETAILS FURN ISHED BY THE ASSESSEE WERE FOUND TO BE INCORRECT, ERRONEOUS OR F ALSE. IN VIEW OF THE ABOVE, WE, RESPECTFULLY FOLLOWING THE DECISION OF H ONBLE APEX COURT IN THE CASE OF CIT VS. RELIANCE PETROPRODUCTS PVT.LTD. (2010) 322 ITR 158 (SC), CANCEL THE PENALTIES FOR ALL THE THREE YE ARS UNDER CONSIDERATION. 4. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE A RE ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 05.09.2016 . SD/- SD/- (DIVA SINGH (DIVA SINGH (DIVA SINGH (DIVA SINGH ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : M/S BARNALA STEEL INDUSTRIES LIM ITED, M/S BARNALA STEEL INDUSTRIES LIMITED, M/S BARNALA STEEL INDUSTRIES LIMITED, M/S BARNALA STEEL INDUSTRIES LIMITED, MEERUT ROAD, MUZAFFARNAGAR. MEERUT ROAD, MUZAFFARNAGAR. MEERUT ROAD, MUZAFFARNAGAR. MEERUT ROAD, MUZAFFARNAGAR. 2. RESPONDENT : ASSISTANT COMMISSIONER OF INCOME TA X, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -2, MUZAFFARNAGAR. 2, MUZAFFARNAGAR. 2, MUZAFFARNAGAR. 2, MUZAFFARNAGAR. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR